American Airlines, Transport Workers Union Launch Joint Ad Campaign

Advertising Reflects Strength of American as Contract Aircraft Maintenance Provider

FORT WORTH , Texas – American Airlines and the Transport Workers Union (TWU), representing the airline’s maintenance workers, today unveiled a new print advertising campaign that focuses on the airline’s ability to transform itself into a world-class aircraft maintenance provider.

In addition to the $100 million investment in the American Airlines Maintenance Services group approved in late March by the AMR Board of Directors, American is investing further with advertising targeted at potential customers. The ad campaign, which breaks today, is part of American’s ongoing efforts to generate awareness of, and build, its contract maintenance business.

The campaign underscores American’s commitment to its Maintenance, Repair and Overhaul (MRO) business and its effort to achieve the right balance between investment in this business and the need for continued financial improvement, both in terms of revenue growth and cost reduction.

“We are changing the way we are doing business, not only for our external customers, but in how we work with our employees and union partners,” said Bob Reding, American’s Senior Vice President - Technical Operations. “The only way this transformation will succeed is by engaging and taking advantage of the experience, knowledge and ingenuity of our talented workforce. This is why this ad campaign will focus on our front-line M&E employees – they are the reason for our current and future success as a leading MRO provider.”

The initial advertisement will appear in newspapers in markets such as Chicago, Dallas/Fort Worth, Tulsa, Okla., and other U.S. cities. The ad will appear in leading aircraft and aviation trade magazines throughout the summer. The ad features an aircraft maintenance technician working in day-to-day activities and reiterates that by streamlining costs and improving efficiencies, American is able to offer customers a one-stop shop for all their maintenance requirements.

“American’s vision is to become the premier North American MRO provider, and this ad campaign captures the main reason this is possible – the dedication and hard work of TWU members,” said John M. Conley, International Representative and AA System Coordinator, TWU. “We decided early on to minimize uncertainty, and together recognized that our future would be far more predictable by continuing down that path. When you look at our achievements and the reputation we have built, we are well on our way to becoming a world-class MRO.”

For the past three years, American and the TWU have been working together to transform the airline’s maintenance organization from a cost center to a profit center. Using the rigorous principles of Continuous Improvement, the maintenance team has increased efficiencies, reduced costs and significantly enhanced operations.

In 2006, American generated more than $95 million in third-party revenue and set a goal to increase that amount by the end of 2007 to $175 million, not including $225 million of engine overhaul work performed for customer airlines by Texas Aero Engine Services Limited (TAESL), a joint venture between American and Rolls-Royce.

American Airlines Maintenance Services offers a full line of airframe, engine, component and line maintenance services and customizes those services to meet the specific needs of each client. American’s MRO business has a growing customer base of more than 70 different entities ranging from domestic and international airlines to Original Equipment Manufacturers (OEM) to the U.S. military.

Learn more about American Airlines Maintenance Services by visiting www.mroaa.com.